Credit repair is the process of correcting inaccurate, outdated or erroneous information on a individual’s credit report. A true credit report is vitally important for getting any type of financial help. Inaccurate information can cause embarrassing situations such as being turned down for a loan, credit card, job or even a lease or rental. It’s advisable to have your credit report professionally adjusted by a credit repair company before you apply for any loans, credit cards, employment or any other financial transaction that requires a great credit score.
A credit repair program helps customers to dispute inaccurate information on their credit reports. This prevents the negative information from moving onto your credit file that further lowers your credit score. Most credit repair companies have the ability to provide services in your local area. Additionally, there are companies that offer nationwide positive identity repair service and services.
The credit repair process begins by the client making an inquiry to the credit reporting agencies. They check to find out if there are any mistakes in the information they are receiving from the 3 major credit reporting agencies: Experian, TransUnion and Equifax. If errors are found they contact the credit agencies with the details. After the credit agencies receive the details from the credit bureau, the customers are sent a notice informing them of the errors. The credit report companies then investigate the claims and make certain that the errors are fixed.
Credit repair is not a simple task to accomplish, it takes patience and determination to manage disputes one by one. You will need to write or telephone your credit reporting agency at least one time to report the disputed information. There are a number of reasons why the credit reporting bureau may not remove negative information from your credit file, ranging from errors to data that is not even yours. Your primary purpose is to have the negative information removed from your credit report to increase your credit score.
Credit Repair is not a one-time task. It is a continuous procedure that has to be addressed. When you hire a credit repair service you should be prepared for one to two weeks of correspondence between you and the credit reporting bureaus. During this period you will be informed of the progress each agency has made in resolving the negative details. When the negative information has been removed from your credit report that the credit repair service company will take over from there.
When dealing with credit repair you should make sure you read all agreements very carefully. Sometimes it can be more difficult to fix certain problems if the credit reporting agencies require additional information, such as verification of employment. Always be sure that the agreement is clear on what you’re agreeing to rather than agree to terms that you don’t understand.
Besides working with the credit repair company to remove inaccurate information, you might also want to think about disputing credit report errors. Lots of individuals do not realize they even have problems with their credit until they apply for a mortgage or a car loan. For many people this process won’t be complicated. They simply want to be sure that the information is accurate in order that they can avoid paying high rates of interest or being denied credit because of incorrect information. If you discover any incorrect or false information on your report you can dispute it with the credit reporting bureaus and have them remove it.
As soon as you have made the decision to use credit repair you have to be proactive in monitoring your credit score and ensuring all negative items are removed. If you end up consistently having high rates of interest or fees, you can begin to challenge those negative items with the credit agencies. The credit bureaus will attempt to verify the negative information by contacting the original creditor. In the event they cannot prove the product is inaccurate they will remove it. The challenge process takes some time and you might not have the patience to observe your score constantly but once you begin to see the numbers move in the right direction you’ll be happy you took the time to work with credit repair. Your credit score will start to improve and you will have the financial power you need to get the loan or credit you deserve!